U.S. stocks climbed on Monday, led by tech sector gains after President Trump’s administration granted a temporary exemption from new tariffs on smartphones and other electronics. The Dow Jones Industrial Average rose 0.5%, the S&P 500 added 0.6%, and the Nasdaq gained 0.2%, though broader market optimism was tempered by ongoing uncertainty around trade policy.
Apple Leads Gains After Tariff Exclusion
Apple shares jumped nearly 4%, helping drive the broader tech sector higher, after officials confirmed that smartphones, computers, and other consumer electronics imported from China would not immediately face new tariffs. The news marked a short-term victory for megacap tech companies, including Nvidia and Apple, which have been at the center of trade policy debates.
The S&P 500 traded at 5,425.84 as of Monday afternoon, while Apple reached $205.68, up $7.53 on the day.
Mixed Messages from Trump Administration
Despite the initial rally, investor caution remains high as signals from Washington turned increasingly contradictory. On Sunday, Commerce Secretary Howard Lutnick said electronics would soon be targeted under new levies, while Trump later clarified via social media that “no exception” had been made for the electronics supply chain, signaling a potential inclusion in upcoming national security tariff investigations.
The conflicting messages have left markets uncertain about what to expect in the weeks ahead, with traders bracing for continued volatility in tech stocks and export-reliant sectors.
Safe-Haven Assets in Focus
Meanwhile, traditional safe-haven assets continued to draw investor interest. The 10-year Treasury yield fell below 4.4%, reflecting caution despite equity gains, while the U.S. dollar weakened against major currencies. Analysts suggest these moves signal broader concerns about long-term economic stability, even as stock indexes post short-term rallies.
Strong Earnings Offer Support
Beyond tariff headlines, Goldman Sachs posted stronger-than-expected earnings, helping lift financials and supporting broader market sentiment. Wall Street is watching closely as more companies report earnings this week, offering a first look at how businesses are coping with Trump’s evolving tariff regime.
Recession Risk Still on the Horizon
While markets may benefit from temporary policy relief, economists warn that the broader economic outlook remains fragile. The potential for inflation spikes due to tariffs, coupled with slower growth projections, continues to raise fears of a mild recession later this year.
